CHART OF THE DAY: THE TRUTH ABOUT EUROPE

The periphery is hurting badly. What countries like Spain,
Italy, and Greece so desperately need is growth, and they're not
getting any of it. This not only is bad from a societal
standpoint (as the jobs picture gets worse and worse) but it
makes sovereign debt dynamics worse, as the GDP part of
debt-to-GDP shrinks.

Core is not doing so hot either. The French number showed a
particularly steep drop. Germany has dropped below 50 as well.

Surprisingly, the only real "bright spot" was Ireland, which
saw a big pickup in New Orders and exports. Somehow it continues
to avoid the curse of the rest of the PIIGS.

This
chart from Markit summarizes the situation up nicely, as it
shows the core of Europe rapidly meeting the periphery in the
recession zone.